All of the following are ways that a company's current ratio would decrease except
A) purchasing inventory on account.
B) adding equal amounts to the numerator and denominator.
C) paying off one-third of its accounts payable.
D) paying cash for new equipment.

Question

Quizplus · Accepted Answer

Paying off one-third of its accounts payable decreases current liabilities, which increases the current ratio, rather than decreasing it.

All of the Following Are Ways That a Company's Current